Ultimate Guide to the CFE (CPA Canada): Everything You Need to Know
The Common Final Examination (CFE) is the final milestone of the CPA Canada program — a three‑day exam that tests your technical knowledge, case‑writing skills, judgment, and endurance. Think of it as a triathlon:
Day 1 → Warm‑up
Day 2 → Marathon
Day 3 → Sprint
Each day has a different purpose, structure, and strategy. This guide breaks down exactly what to expect and how to prepare.
Day 1: The Warm‑Up
Day 1 is a 4‑hour case based on your Capstone 1 company. The case moves forward 3–4 years and gives you new strategic and operational issues to analyze.
What Day 1 Tests
Case‑writing skills
Management Accounting (MA)
Finance
Strategic thinking
Integration
How to Approach Day 1
Follow the CPA Way:
Assess the Situation
Analyze Major Issues
Conclude
Communicate
Start with a Situational Analysis (mission, vision, values, SWOT, key success factors, objectives).
Then analyze major issues, provide quant + qual, conclude, and integrate.
Avoid Fatal Flaws
Unsupported conclusions
Generic analysis
Missing quant
Missing depth
No integration
Quant Topics You Must Know
NPV
Payback
ROI
Contribution margin
Make vs buy
Lease vs buy
Valuation
Profitability
Day 1 is holistic — you pass by showing strong thinking, structure, and integration.
Day 2: The Marathon
Day 2 is a 5‑hour, 40+ page case with two parts:
Common (FR + MA for everyone)
Role (Assurance, PM, Tax, or Finance)
You only read the Common + your Role (20–25 pages).
Choosing Your Role
Most candidates choose the elective they took — usually Assurance or PM. Even without audit experience, Assurance is often recommended because it has fewer technicals and more predictable AOs.
How to Approach Day 2
Spend ~1 hour reading
Spend ~2 hours on Common
Spend ~2 hours on Role
Expect 12–14 AOs
Expect to write 12–14 pages
Your Goal on Day 2
Get Cs.
Day 2 is the only day where Cs matter the most — especially for your Role.
Day 3: The Sprint
Day 3 is 4 hours with 3–4 multi‑competency cases.
You’ll see AOs from every area:
FR
MA
Audit
Tax
Finance
Governance
This is the breadth day.
The Challenge
You’re tired, the cases are short, and the time pressure is intense.
Expect:
5–8 AOs per case
18–22 AOs total
Strategy for Day 3
Move quickly
Touch everything
Aim for mostly RCs
Get Cs in easier AOs (especially FR/MA)
Stick to your time budget
Most students lose time on the last case — don’t let that happen.
How the CFE Is Marked
Day 1 is marked separately.
Days 2 and 3 are marked together using four levels.
Level 1: Sufficiency
This is the total of all Cs + RCs across Days 2 and 3.
CPA Canada sets a threshold each year based on national performance.
If you fail Level 1, you receive a decile ranking.
Level 2: Depth (FR or MA)
You must show depth in either FR or MA — not both.
Aim for 3–5 Cs in one of these areas.
Level 3: Role
This is the most unforgiving level.
You must get enough Cs in your Role AOs on Day 2 only.
Day 3 does not help you here.
If you fail Level 3, you fail Days 2/3 — even if you passed Levels 1 and 2.
Level 4: Breadth
You must show at least RC‑level performance in every competency area.
You cannot skip topics like Finance or Tax entirely.
Level 4 is usually easier to pass if you’ve done well in Levels 1–3.
Why Students Fail the CFE
Common reasons include:
Not understanding the exam structure
Weak technical knowledge
Poor case‑writing skills
Not practicing enough cases
No case marking or feedback
No mentor or coaching support
The CFE is not just a technical exam — it’s a writing, strategy, and endurance exam.
Final Thoughts
The CFE is challenging, but with the right strategy, structure, and practice, you can absolutely pass.
Understanding the exam format — and how it’s marked — is half the battle.
If you want help with case writing, technical depth, or personalized feedback, support is available.
If you need help in your CPA Canada Coaching, please feel free to reach out:
RavGun CPA Academy
https://www.ravguncpaacademy.com/
+1 437 833 9540
